“Cryptocurrencies have not confirmed their status as a safe asset”

Cryptocurrencies have not confirmed their status as a safe asset

Many industry representatives call Bitcoin “digital gold”, but, according to the famous investor Mark Mobius, cryptocurrencies have not confirmed their status as a safe asset.

In a CNBC Channel program, Squawk Box, in a conversation about emerging markets and safe assets, Mobius emphasized that cryptocurrencies, like fiat money, are based on people’s faith. They are valuable only as long as people use them.

“The fact is that a whole generation of people has appeared who believe in the Internet and cryptocurrencies. Cryptocurrencies will allow you to buy something as long as people believe in them. And while they believe – everything is fine, ”Mobius said.

At the same time, the founder of Mobius Capital expressed the opinion that cryptocurrencies secured by gold can be very interesting, but the blockchain is too open for attacks, so Mobius is skeptical about it. He said:

“If there is a cryptocurrency secured by gold, and all this is connected, then this can be quite interesting. Blockchain, I think, is a very risky undertaking. After all, everything that one person created can break another. This can lead to big crises, so we need to be careful with the blockchain. ”

Mobius said earlier that he was considering buying the first cryptocurrency. As the financier explained, the current policy of the US Federal Reserve and a possible financial crisis in the future are pushing him to take this step.